Inside the Black Box




Barnes & Noble



Quant trading is a significant, but mysterious, part of the capital markets. Black box strategies, as they have come to be known, are developed and managed by some of the greatest minds in the world. Yet, these black boxes are reviled as often as they are praised, and more often still, they are dismissed as incomprehensible. Never before has this fascinating niche been brought to light in such clear terms as is accomplished by Inside the Black Box. Without the use of any formulae or unexplained jargon, Inside the Black Box gives anyone with a modest background in finance and trading the ability to understand quant trading.


The book is divided into four sections. The first provides a background on quant trading, its scope, its successes and failures, and what kinds of lessons investors can learn from this niche.


The second provides an unprecedented and updated look behind the veil of quant trading strategies themselves, exploring everything about these models, what comprises them, and how they are developed and implemented. This explication of black boxes is done in clear, intuitive terms, without any formulae. This section details how a variety of hedge fund strategies work, including CTAs, GTAA, Equity Market Neutral, Quant Long/Short, and Statistical Arbitrage.


The third section of Inside the Black Box addresses a myriad of subjects surrounding quant trading, including a separation of truths from myths, an exploration of the special risks inherent to quant trading, a manual on how to evaluate quant traders and their strategies, and considerations regarding building a portfolio that includes quants.


Finally, the fourth section addresses high frequency trading (HFT) and high speed trading. It defines HFT, explains low-latency trading infrastructure, reveals the various kinds strategies HFTs utilize to make money, and addresses some of the controversy and regulatory issues surrounding this niche.


The book concludes by looking ahead to the future of quant trading. Inside the Black Box is being hailed by experts and industry professionals as being a landmark book.


See for yourself why!